SKS Microfinance Q3 net loss at Rs 428 cr; third successive quarter of losses

SKS Microfinance Q3 net loss at Rs 428 cr
SKS Microfinance Ltd, the only listed microfinance institution (MFI) in the country, has posted the net loss of Rs 428 crore for the third quarter ended December 31, 2011, reflecting the tumbling prospects of the India's microfinance sector.

The company ahd posted the net profit of Rs 34.15 crore during the same period a year ago, said the company in its filing to the Bombay Stock Exchange on January 19, 2012.

This was the third successive quarter of loss for the company, as it lost Rs 384.54 crore during the September 2011 quarter, and Rs 218 crore in the June quarter. Following the successive losses, company's net worth has eroded by more than Rs 1,000 crore since the company got listed in August 2010.

Commenting over the development, Dilli Raj, chief financial officer of SKS said “The worst is over for us. In line with our earlier guidance, the company has written off a significant chunk of its loans in Andhra Pradesh and has adequately covered the remaining portfolio".

Company has reported significant fall in repayment rate in Andhra Pradesh which fell to 11 per cent, even as company has written off Rs 900 crore since March as bad loans from Andhra Pradesh. Company has written off Rs 332 crore of bad debts in Q3 FY12, while Rs 488 crore of bad loans are yet to written off.

Shares of the company, on January 20, 2012, were trading at Rs 89.30 a piece, down 4.54 per cent, after hitting the 52-week low of Rs 85 during the early morning trade on BSE.

Dion Global Solutions Ltd

Read more about: results, bse, sks microfinance
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